Jensen v. Bailey

The Jensens (defendants) sold their house to the Baileys (plaintiffs), representing on a disclosure statement that any home improvements complied with building code. Certain improvements had actually been made without required permits in violation of the code, though the Jensens were unaware of the violations. Two years after the sale, the Baileys sued over the nondisclosure, and the circuit court ruled for them, finding the Jensens should have known of the violations. The Jensens appealed.